Senior members of chambers of commerce and industry associations have appealed to the government to lower property taxes and called for the immediate revocation of hikes.
In view of this, Industry leaders recently called upon TDP’s State President & MLA(Gajuwaka) Mr Palla Srinivasa Rao and Mr P.G. V. R. Naidu (Gana Babu), MLA (Visakhapatnam West) and sought their intervention in easing the burden caused by the unwarranted increase in property taxes.
In a representation given by the Andhra Pradesh chambers of commerce & industry federation it stated that the method of assessing property tax was altered through an amendment to the Municipal Corporation Act, changing it from rental value to capital value.
This it stated has placed a long-term financial burden on property owners.
“Linking property tax to capital value means that every time the government increases market value, property tax too goes up. Currently, property tax increases by 15% annually. Since this system was introduced, tax amounts have nearly doubled. Even if there are no changes to the building or if a vacant plot is sold, tax is levied on the capital (market) value, which is becoming a heavy burden. Additional tax is also imposed on buildings for lack of building permits” said the letter signed by APCCIF’s Vizag chairman Mr Srinath Chittori.
The letter noted that there is a severe recession in the market and that increasing property taxes and rates at this time would further exacerbate the situation and would be a severe blow to house and plot owners.
“VUDA was unable to sell even 15%-20% of plots at the basic sub-registrar value in recent auctions. Real estate has crashed, and builders are unable to sell inventory” noted the letter.
Industry has thus called for: Repealing amendment Act 44/2020 and G.0. No. 198; Issue orders halting the 15% property tax increase scheduled from April; Cancel the 24% penalty on delayed payments and allow payment without penalty until the end of June and to cap future penalty interest at 12%, in line with standard practices.
Some of the industry leaders who participated in the meeting included Mr O Naresh Kumar, Mr G Sambasiva Rao, Mr Mallik Kankatala, Mr Pydah Krishna Prasad along with other senior members.
